Updated almost 16 years ago on . Most recent reply
Lease Options
I am considering my first lease option sale, can anyone offer any tips, or experience? Thanks!
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It was structured properly, but I wasn't holding my breath when it came to actually closing the deal.
It was my first, likely not my last, L/O.
Options For The L/O Were:
$5,000 down, $700/month 1st Year, $725/month 2nd Year.
or
$3,000 down, $725/month 1st Year, $750/month 2nd Year.
Priced right at the Tax Assessed Value/Retail when the property was purchased at roughly 60% of the ARV.
I didn't want to really sell it, however, a large down payment & making close to $50k would have EASILY made me move on from the property.
The tenant put $5,000 down, stayed & payed rent for 3 months, than abruptly moved out. I got a total of 9-10 Months rent in a matter of the tenant only staying 3. Am I pissed they moved out? Absolutely, but I was able to really see what my property management team was like. I highly doubt they ever checked this tenants credit and/or track record, and didn't do much for me. Was happy to finally move on, and although a lesson was learned, I'm happy I learned it not upside down :)